Summertime is a prime travel time. It's no surprise that Booking Holdings is currently a top performer. Booking stock on Wednesday got an upgrade to its Relative Strength (RS) Rating, from 67 to 74.
Booking stock is forming a first-stage cup base following a series of stairstep increases this past year. Norwalk, Conn.-based Booking's stock is up about 67% in the past year and a half. The upgraded RS Rating shows that Booking stock tops 74% of all stocks in IBD's database for price performance over the past year.
The upgrade also puts Booking just seven points below a Relative Strength Rating of 80. Why is that important? Market research shows that the best stocks often have an RS Rating of at least 80 in the early stages of their moves, and Booking is closing in on that key benchmark.
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Booking Stock Forging First Stage Base
Travel giant Booking is one of the world's largest travel companies. It operates its namesake online travel agency as well as Priceline.com, Agoda, Kayak, Cheapflights, Rentalcars.com, Momondo and OpenTable brands.
Booking stock is trying to complete a first-stage cup without handle with a 4,144.32 entry. See if it can break out in volume at least 40% higher than normal. Wednesday afternoon Booking traded around 3,899.
Booking Holdings showed 11% earnings growth in its most recent report to $41.90 per share, while sales grew 7% to $5.86 billion. The prior three stanzas its EPS rose 36%, 29% and 76%. Meanwhile its revenue grew 21%, 18% and 17% during that period.
For the current quarter, analyst consensus is for a mild 7% rise in EPS on a 4% increase in sales. The following quarter the company is projected to return to double-digit earnings growth and higher sales.
Most Booking Ratings Excel
Booking has an 80 Composite Rating out of a best-possible 99. It also boasts a 96 EPS Rating and a best-possible A SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A terrific and E terrible.
However, even as its stock keeps driving higher, big money investors are on the sidelines. Its stock has an E Accumulation/Distribution Rating, showing that institutional investors like mutual funds and ETFs are selling more shares than buying.
Booking stock holds the No. 4 rank among its peers in the Leisure-Travel Booking industry group. Travelzoo is the top-ranked stock in the group.
The exclusive Relative Strength Rating from Investor's Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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